What kind of expenses does “loss of use coverage” cover?

Loss of use coverage is designed to provide financial protection for the costs incurred when an insured person is unable to utilize their property due to a covered loss. This typically applies in situations where a residence becomes uninhabitable due to events like fire, flood, or significant damages that render it unusable. In these cases, the insured may have to incur additional expenses, such as temporary housing, increased living costs, or other related expenses while they are unable to access their property.

This coverage is particularly important because it helps ensure that individuals do not face financial hardship simply because their property is undergoing repairs or is temporarily out of service due to unforeseen circumstances. The focus is specifically on the practical implications of property loss, rather than other types of expenses such as medical costs, legal fees, or replacement costs, which are covered under different sections of insurance policies.